Equity market volatility leads to increased interest in JGBs

With the recent volatility seen in equity markets and the squeeze in credit there has been a marked flight to quality - in particular, sovereign debt. While this trend has been observed in most global markets, increased interest in Japanese Government Bonds (JGBs) is also springing from other events in the region. Vimal Gor, who covers the dollar bloc and Japanese market within Morley's sovereign debt desk, says the interesting thing about the US market at the moment is how difficult it is becoming to call the Treasury market. Less dependent on interest rate movements, Treasury yields are...